A growing number of UK homeowners are facing difficulties selling their properties due to the presence of spray foam insulation, prompting a consumer group and a property trade body to call for urgent government intervention.
The HomeOwners Alliance (HOA) has partnered with the Property Care Association (PCA) to raise concerns over the controversial insulation material, which has been installed in approximately 250,000 homes across the UK. While the exact number of affected rental properties remains unknown, homeowners struggling to sell or release equity from their homes are also at risk of exploitation by rogue removal firms.
Spray foam insulation, once applied, is notoriously difficult and expensive to remove, with costs often far exceeding the original installation price. Recent research conducted by the BBC and the HOA found that only 25% of mortgage lenders—and no equity release providers—are willing to lend on homes where spray foam has been retrofitted. As a result, homeowners are now being advised against installing the product.
Paula Higgins, Chief Executive of the HOA, has urged the government to address the financial burden on affected homeowners. “The ECO4 grant and Great British Insulation Scheme (GBIS) both fund the installation of spray foam to eligible households. It is unacceptable that homeowners, some of whom received government grants to install the insulation, are now facing removal costs in the thousands just to satisfy mortgage lenders and equity release providers.”
She also warned of unscrupulous removal firms taking advantage of vulnerable homeowners. “We call on the government to crack down on rogue spray foam removal companies that are pressuring homeowners into unnecessary and often damaging removals,” she said.
In a joint letter to Miatta Fahnbulleh, Minister for Energy Security and Net Zero, and Ali Rushanara, Minister at the Ministry of Housing, Communities & Local Government, the HOA and PCA have called for a roundtable discussion on the future of spray foam insulation and its impact on homeowners.
The PCA has taken steps to mitigate concerns, introducing an inspection protocol and a register of trained surveyors to ensure proper assessments of homes with spray foam insulation. However, despite these efforts, scepticism among mortgage lenders remains high.
Sarah Garry, Chief Executive of the PCA, highlighted the issue: “In 2023, we collaborated with lenders and industry experts to develop the Sprayed Foam Inspection Protocol and a register of qualified surveyors. While lenders are concerned about potential moisture entrapment, mould, damp, and timber decay, even properties with legitimate installations and proper documentation are still being rejected for financing.”
Garry emphasized the need for government action: “We urge the government to convene a roundtable discussion with property specialists, lenders, and equity release companies to determine whether spray foam insulation should remain part of government grant schemes and to establish a support framework for homeowners who have already installed it.”
With thousands of homeowners caught in limbo, the pressure is mounting on ministers to take swift action to resolve the growing crisis.